Finance Globe

U.S. financial and economic topics from several finance writers.
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When it makes Sense to Cancel your Credit Card

When it makes Sense to Cancel your Credit Card

A credit card that treated you well in the past may not do the same for you in the future. Despite the fact that you may not want to make the move, there are times when it is a good idea to cancel a credit card.

The use of a credit card is supposed to improve your financial situation, not hold you back. If you find that things are not going as planned, regardless of the reason, it is time to consider a change.

Here are three times when it makes sense to cancel your credit card:

1. You can no longer trust yourself to use it responsibly. If you find yourself abusing your credit card, even when you know it is a bad idea, it is time to get rid of it once and for all. This will change the way you live your life, from a financial perspective, but it will be beneficial in the long run. When you don’t have your credit card you can’t use it, and that is often times a good thing.

2. It is no longer competitive with what else is out there. When you compare the perks and features of your credit card to the competition, what do you see? If you realize you are not getting what you should, such as a high quality rewards program, it may be time to consider making a change. You can cancel your current credit card and opt for an offer that brings more to the table.

3. The fees are adding up. There are fees associated with every credit card, however, you should be able to avoid most of these. In the event that you find yourself paying a large annual fee, for example, look into making a change. There are many cards out there without this fee (among others).

Even though cancelling your credit card may have an impact on your credit score, doing so now could actually work in your favor over the long run. Compare the pros and cons and then make the decision that is right for you and your finances.

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Monday, 26 July 2021

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